Supreme Court Affirms Automatic Removal of Local Council Heads Over Failed Budgets

June 18, Colombo (LNW): The Supreme Court has clarified that a Chairman of a Pradeshiya Sabha who is unable to secure approval for the council’s annual budget after the initial two years of its term automatically loses the right to remain in office under existing law.

The ruling was delivered in a case brought by a former local government chairman who sought to challenge the legality of his removal following the rejection of a budget proposal by council members.

In a unanimous decision, a three-judge bench comprising Justices Arjuna Obeyesekere, Sampath Abayakoon and Sampath Wijeratne dismissed the fundamental rights petition and upheld the application of provisions contained in the Pradeshiya Sabha Act.

The case stemmed from the removal of former Hingurakgoda Pradeshiya Sabha Chairman Susantha Gnanaratne, who was deemed to have vacated his position after the council failed to approve its budget for 2014 within the legally prescribed timeframe. Authorities subsequently informed the council that he was considered to have resigned by operation of law.

The petitioner argued that the decision was unlawful and sought judicial intervention against the notification issued by the North Central Province Commissioner of Local Government. However, the court found that the relevant legal provisions had been correctly applied and that no violation of fundamental rights had occurred.

The judgment focused on amendments introduced through the Local Authorities (Special Provisions) Act of 2012, which strengthened accountability measures within local government institutions. Under these provisions, a chairman who fails to obtain council approval for a budget after being afforded the opportunities stipulated by law is automatically regarded as having relinquished office once the council has passed its first two years in operation.

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